FOR IMMEDIATE RELEASE BOSTON SCIENTIFIC ANNOUNCES RESULTS FOR SECOND QUARTER 2016 Marlborough, Mass. (July 28, 2016) -- Boston Scientific Corporation (NYSE: BSX) generated sales of $2.126 billion during the second quarter ended June 30, 2016, compared to the company's guidance range for the quarter of $2.010 to $2.060 billion. This represents growth of 15 percent on a reported basis and 16 percent on an operational basis (calculated on a constant currency basis), all compared to the prior year period. The company reported a GAAP loss of $207 million, or $(0.15) per share, compared to earnings of $0.08 a year ago, and achieved adjusted earnings per share of $0.27 for the period, compared to $0.22 a year ago. "Our strong performance is evidence of the success of our category leadership strategy," said Mike Mahoney, chairman and chief executive officer, Boston Scientific. "Our deep portfolio, commitment to innovation and high - performance culture are helping us meet the needs of our customers and patients while sustaining growth and momentum." Second quarter financial results and recent developments: • Reported second quarter sales of $2.126 billion, representing an increase of 15 percent on a reported basis and 16 percent on an operational basis, all compared to the prior year period. • Grew organic revenue 10 percent in the second quarter over the prior year period. Organic revenue growth excludes the impact of changes in foreign currency exchange rates and sales from the acquisition of the American Medical Systems (AMS) male urology portfolio. • Reported a GAAP loss of $(0.15) per share compared to the company's guidance range of $0.12 to $0.15 per share, primarily due to litigation - related charges. Achieved adjusted earnings per share of $0.27 compared to the guidance range of $0.25 to $0.27 per share. • Achieved second quarter revenue growth in all segments, all compared to the prior year period: ◦ MedSurg: 29 percent (29 percent operational and 13 percent organic) ◦ Cardiovascular: 13 percent (13 percent operational and organic) ◦ Rhythm Management: 4 percent (5 percent operational and organic) • Delivered strong regional revenue growth, all compared to the prior year period: ◦ U.S.: 15 percent (15 percent operational and 8 percent organic) ◦ Europe: 16 percent (14 percent operational and 9 percent organic) ◦ AMEA (Asia - Pacific, Middle East and Africa): 18 percent (18 percent operational and 16 percent organic) ◦ Emerging markets:* 8 percent revenue (21 percent operational and 20 percent organic)
• Received FDA approval for the Precision Montage™ MRI Spinal Cord Stimulator System, which offers patients suffering from chronic pain full - body access to magnetic resonance imaging procedures, as well as customized therapy. • Presented clinical data from the EFFORTLESS study at the Heart Rhythm Society's annual Scientific Sessions that demonstrated positive long - term safety and efficacy outcomes for the Subcutaneous Implantable Defibrillator (S - ICD) System. Also presented pre - clinical data for the EMPOWER™ Modular Pacing System,** which can communicate with the EMBLEM™ S - ICD System, allowing electrophysiologists to treat life - threatening arrhythmias with a modular therapy approach. • Presented three - month data from the 1,000 - patient EWOLUTION registry for the WATCHMAN™ Left Atrial Appendage Closure (LAAC) Device at the annual EuroPCR Scientific Program in Paris that demonstrated a high success rate of 98.5% in complete left atrial appendage closure. Also unveiled data from the 1,000 - patient RESPOND study, which evaluated the Boston Scientific Lotus™ Valve*** through 30 days post implant procedure and established excellent device performance, a strong safety profile and extremely low rates of paravalvular leak (PVL). • Expanded offering of MR - conditional products with FDA approval of the ImageReady™ MR - Conditional Pacing System, including the INGEVITY™ MRI pacing leads and CE Mark of the EMBLEM MRI S - ICD System. • Received FDA approval of the IntellaNav™ XP and the IntellaNav MiFi™ XP navigation - enabled ablation catheters for the treatment of patients with Type - I atrial flutter. • Announced the acquisition of Cosman Medical, a manufacturer of radiofrequency ablation systems used by physicians to treat patients with chronic back and neck pain, expanding the company's Neuromodulation portfolio and offering physicians a wider choice of non - opioid therapeutic options for treating pain. • Entered into a contingent Stipulation of Settled Issues with the U.S. Internal Revenue Service to resolve disputes related to previously disclosed transfer pricing issues, which is expected to bring greater certainty to the company's balance sheet and cash flow outlook. • Received positive guidance from the National Institute for Health and Care Excellence (NICE) for the use of the GreenLight XPS™ Laser Therapy System in the treatment of patients with benign prostatic hyperplasia, or BPH. * We define Emerging Markets as including certain countries that we believe have strong growth potential based on their economic conditions, healthcare sectors, and our global capabilities. Currently, we include 20 countries in our definition of Emerging Markets. ** The EMPOWER Modular Pacing System is currently in development and not available for use or sale worldwide. *** In the U.S., the Lotus Valve System is an investigational device and not available for sale. It is CE marked in the European Union.
Net sales for the second quarter: Change Three Months Ended As Constant June 30, Reported Less: Impact of Currency in millions 2016 2015 Basis Foreign Currency Basis Interventional Cardiology $ 579 $ 515 13 % $ (4 ) 1 % 12 % Peripheral Interventions 258 228 13 % (3 ) (1 ) % 14 % Cardiovascular 837 743 13 % (7 ) 0 % 13 % Cardiac Rhythm Management 477 460 4 % (5 ) 0 % 4 % Electrophysiology 60 57 5 % (1 ) (1 ) % 6 % Rhythm Management 537 517 4 % (6 ) (1 ) % 5 % Endoscopy 361 326 11 % (3 ) 0 % 11 % Urology and Pelvic Health 256 135 89 % (7 ) (1 ) % 90 % * Neuromodulation 135 122 11 % (1 ) (1 ) % 12 % MedSurg 752 583 29 % (11 ) 0 % 29 % Net Sales $ 2,126 $ 1,843 15 % $ (24 ) (1 ) % 16 % *Urology and Pelvic Health grew 18% on an organic basis. Growth rates are based on actual, non - rounded amounts and may not recalculate precisely. Sales growth rates that exclude the impact of changes in foreign currency exchange rates and/or the impact of recent acquisitions with significant sales are not prepared in accordance with U.S. GAAP. An explanation of the company's use of these non - GAAP financial measures is included in the exhibits attached to this news release. On a consolidated GAAP basis, net loss for the second quarter of 2016 was $207 million, or $(0.15) per share. These results included acquisition - and divestiture - , litigation - , and restructuring and restructuring - related net charges and amortization expense, of $580 million (after - tax) or $0.42 per share. Adjusted net income for the second quarter of 2016, excluding these net charges, was $373 million, or $0.27 per share. On a consolidated GAAP basis, net income for the second quarter of 2015 was $102 million, or $0.08 per share. These results included an intangible asset impairment charge, acquisition - and divestiture - related net charges, restructuring and restructuring - related net charges, litigation - related net credits, debt extinguishment charges and amortization expense, of $192 million (after - tax) or $0.14 per share. Adjusted net income for the second quarter of 2015, excluding these net charges, was $294 million, or $0.22 per share. Guidance for Full Year and Third Quarter 2016 The company now estimates revenue for the full year 2016 to be in a range of $8.270 to $8.370 billion (compared to prior guidance of $8.075 to $8.225 billion), which versus the prior year period represents growth of approximately 11 to 12 percent on both a reported basis and on an operational basis, and growth of approximately 8 to 9 percent on an organic basis. The company now estimates income on a GAAP basis in a range of $0.30 to $0.35 per share (compared to prior guidance of $0.59 to $0.65 per share), and now estimates adjusted earnings, excluding acquisition - and divestiture - , litigation - , and restructuring and restructuring - related net charges, and amortization expense, in a range of $1.07 to $1.11 per share (compared to $1.06 to $1.10 per share).
Recommend
More recommend
